Maha Rashtra Apex Corporation Ltd. (MAHAPEXLTD) - Chairman Speech

Company chairman speech

1994
MAHARASHTRA APEX CORPORATION LIMITED
CHAIRMAN'S SPEECH
Ladies & Gentlemen,
I have great pleasure in welcoming you to the 51st Annual General Meeting of
your Company.
This year your Company is stepping into the 51st year of its existence. Our
grateful thanks goes to Late Upendra Pai who was also the founder of
Syndicate Bank and Late Dr. T.M.A. Pai and Late T.A. Pai who have played
their role in founding the Maharashtra Apex Bank Ltd. which was later
converted into Hire Purchase Finance Company. Your Company has a Golden
History of safeguarding the customers' interest for over 50 years. The legacy
of our founding fathers' vision, integrity and commitment has been carried on
with utmost care. Today we again pledge ourselves to carry on this legacy and
it will be our duty to see that the golden history and the charisma is
carried on.
Your Company has a unique distinction of paying Dividend for the past 50
years. This year the Directors have proposed an increased dividend of 30%,
pro-rata basis. The Company has provided Shareholders with 3 bonus issues and
the latest bonus issue was in January 1994 in the ratio of 1:5. Your Company
has your splendid support and the capital base has been increasing
consistently. Each Rights Issue was a tremendous success. I, on behalf of my
colleagues on the Board, thank the shareholders for their incessant support.
support. Recently the Rights cum Preferential Offer was made to the
Shareholders of the Company and also to those of the Group Companies.
PERFORMANCE
There has been an allround improvement and growth in the activities of the
Company. The gross income rose to Rs.13.16Crores,ascompared to Rs.9.03
Crores showing an increase of 46%. The Company's net profit after tax has
gone up to Rs. 167.10 lakhs as compared to Rs. 141.49 lakhs. The Cash Profit
has also increased from Rs.205.06 lakhs to Rs.262.04 lakhs showing a
comfortable increase. The Company's fund base for the year increased from
46.32 Crores to Rs.69.03 Crores registering a growth of 49%. The Networth of
the Company also increased from Rs. 5.40 Crores to Rs. 8.80 Crores giving an
impressive growthof 63%. With this, the Earning Per Share on annualised basis
is maintained at Rs. 7.54 and the cash Earning per Share has gone up from Rs.
10 to Rs. 12/- for the year. Further the net return on effective Networth for
the year has been maintained at 27%. In view of the allround progress of the
Company in every sphere of activity, the Directors have proposed a Dividend
of 30% to the Share- holders on pro-rata basis as against 25% in the last
year. This dividend payment is made on the enlarged capital arising after
the bonus share issue and also Rights cum Preferential Issue made during the
year.
FUTURE PLAN
The Company has plans to diversify into allied areas such as Merchant Banking, OTCEI Dealership, Stock Exchange Membership, Mutual Funds and to
offer other specialised serivces.
CONCLUSION
The Company has over sixty thousand depositors both big and small,
Institutional and individuals spread over a wide geographical area. This
growing family of depositors who have been with us for decades is a tribute
and a testimony to the financial probity of the Pai's of Manipal. Yours is
one of the leading transport sector financing companies and caters to over
more than 5,000 unemployed and small borrowers and helps the Industrial
Sector primarily in Karnataka and other States contributing its mite to the
progress of the country. The objectives and goals that your Company has set
for itself are exciting and challenging. Now it is time for the Company to
consolidate and expand its asset base and capitalise resources to contribute
towards building a strong infrastructure. The diversification and growth
plans charted by the Company which are being implemented will bring new
benefits and increased resources coupled with innovative financial solutions
which will all go to build up a strong base to service its Shareholders and
Customers.
I thank the Shareholders, Depositors and friends who stood by us in the
trying times and helped us to achieve this growth rate. I am confident that
in the years to come everybody will extend their co-operation which is needed
by the Company.